AUD/USD falls below 1.0200

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AUD/USD falls below 1.0200

FITITOL--> FXstreet.com (Córdoba) - The aussie continues to lose ground against the dollar, weighed down by the strong risk aversion as stocks and commodities print sharp losses.

AUD/USD recently broke below the 1.0200 support level, and the 200-hour SMA to hit its lowest level in 1 week at 1.0178. Currently, the cross is trading at the 1.0185 zone, recording a 100-pip or 1.0% loss on the day and having entered in negative territory for the week.

"If this risk-off decline extends, the next support for AUD/USD is seen near 1.0125. Here we have a rising trendline as well as a previous resistance pivot to be tested as support", says Fan Yang, analyst at FXTimes. "A hold above this level suggests a further upside risk toward 1.0350-1.0380 where the market will test a previous resistance pivot".

"However if AUD/USD rallies from the trendline but holds below the 1.02-1.0220 area on the way up, it is likely respecting topping formation, and the bearish outlook would strengthen", he adds.